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The Cyprus Tax Department has issued new guidance strengthening due diligence requirements for financial institutions under DAC2/CRS, specifically targeting potential misuse of Citizenship by Investment and Residence by Investment schemes. Financial institutions must now implement enhanced verification procedures to ensure accurate reporting of account holders' tax residency, with immediate application to new clients and a six-month compliance window for existing accounts.

Founders choosing between France and Cyprus often focus on corporate tax rates, but the real difference lies in how profit moves from company to personal account. France applies a 25% corporate tax followed by a 30% flat tax on dividends, while Cyprus charges 15% corporate tax with no further tax on dividends for non-domiciled residents beyond a small capped contribution.

Foreign residents in Cyprus face specific requirements when converting their driving licences, governed by EU residence rules and recognition agreements between countries. The process involves proving usual residence through documentation like registration certificates and utility bills, submitting applications through the Department of Road Transport, and navigating different pathways depending on whether the licence originates from an EU or non-EU country.